Marketing a family business is already a challenge, much more managing the business itself. Aside from issues in leveling with today’s technology which required you to buy Instagram likes just to establish your business presence online, there are other matters that you will have to be involved with – that is mediating family issues in the business environment.
Issues of interest within the family businesses are concerns harder to fix mainly because there are about three levels of interests involved; issues within the family, issues in the business, and issues of ownership.
When faced with a situation like this, it is always at its best to call for a mediator. The mediator will help resolve family issues, dissension in business strategy, and successions in the business. The mediator will have to understand the dynamics of the family, their values of respect, and finally will have to come up with a resolution.
Every family enterprise is distinct and elaborate. Therefore abrupt solutions based on anger is not the way out. Here are 5 guidelines to adhere to that will help you solve a number of family business complications.
5 Family Business Mistakes to Avoid
5 Tips To Help You Avoid Family Business Complications.
1. If the family member is not working in the company or not making real contributions, they don’t deserve to be on the payroll. In a family business, everyone has a role. It is important that the role of each family member is clear to avoid conflicts. Family member employees are still employees so that they have to go through some annual evaluation when it comes to their performance. This will tell you who deserves a merit who needs improvement.
2. There is only one class of employees and they are workers of the company. There is no distinction between family and non-family member employees. Avoid special favors given to family members, treat all employees equal so that they all must abide by the employee’s handbook.
3. Take care not to use family associations. Which means, avoid both reward or punishment just because they are family members. Family members and non-family members should be treated equally with no special rewards or punishments.
4. Connect truthfully and honestly with workers. Let them know if an employee is a family member, but also let it be clear to them that regardless of family relations, the person will work like any other employee in the company. The capability to provide a powerful connection with all associates of the business is vital. To promote an improved environment amongst workers and enhance constant communication in both ways.
5. Don’t mix up family judgments and company decisions. Prevent letting members of the family use company cars or letting them ask personal favors from any members of the workforce. Additionally, it is an awful idea to include personal costs, like family holidays, as business expenses. These are generally perfect instances of meeting family needs using the business funds. Doing so is detrimental to your business.